Bloomberg News

Dundee International REIT Said to Seek C$365 Million in IPO

July 08, 2011

July 8 (Bloomberg) -- Dundee International Real Estate Investment Trust plans to raise about C$365 million ($379 million) in an initial public offering to buy properties in Germany, according to two people familiar with the sale.

The Toronto-based REIT plans to sell about C$290 million in units and C$75 million in convertible debentures, said the people, who asked not to be named because the terms aren’t public. The IPO is expected to be sold next week, they said.

The REIT was founded by Dundee Corp.’s real estate unit to buy 295 office and other commercial properties in Germany with about 12.5 million square feet of leasable commercial area, according to a June 8 filing. Deutsche Post AG, Europe’s largest mail carrier, leases about 75 percent of the property, which would make Dundee International REIT the single largest landlord in Germany for the postal company, the filing said.

The sale would be Canada’s largest REIT IPO in at least a decade, surpassing TransGlobe Apartment REIT’s C$247.3 million IPO in May 2010. TD Securities is leading a group of 11 firms on the sale.

Dundee Corp., a Toronto-based firm that offers asset management and real estate services, will buy 10 million units and its Dundee Realty Corp. unit will buy 2 million units, the filing said. Dundee Realty, which formed Dundee REIT in 2003, has about C$5 billion in assets under management.

A telephone message left with Dundee Corp. Chief Executive Officer Ned Goodman wasn’t immediately returned.

--With assistance from Sean B. Pasternak in Toronto. Editors: David Scanlan

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net


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